Example of Investment Time Period and Goal Investment

Currently, many people have started investing. With this investment product, everyone hopes for maximum and profitable returns. But what is investment, and what types of investments can we choose? Well, in this article, we will try to discuss about investment, and examples of investments based on the time period.

 

What is Investment?

Investment is an investment effort to develop the value of money that we have. In practice, investment examples can be divided into two categories according to the time period. The investment choices themselves can be adjusted to the financial goals to be achieved.

 

All investments are made for profit. But you must clarify your investment goals so that you can prepare them properly. For this reason, when you first invest you have to map out your strategy.

 

For example, setting the amount of funds that you can allocate for your investment. How big can you determine the type of investment you can have. An example of an investment with limited funds is for example a mutual fund investment, while a time deposit is an example of an investment with a fairly large initial capital.

 

In addition, you also need to determine the financial goals you want to achieve. The various types of investment instruments available usually have certain characteristics. For example, stock investment as an example of long-term investment and peer to peer lending (P2P Lending) as an example of short-term investment.

 

Choosing an Investment Objective Based on the Time Period

 

Investment is one of the activities related to the economy which is generally carried out in order to get profits in the future. There are many types and examples of investments currently available. You can choose according to your own needs and availability of funds.

 

 

Ideally, one does not depend on only one type of investment. Your investment portfolio should be divided into different instruments, adjusted to the objectives to be achieved. For example, you take the example of long-term investment in the form of stocks to prepare for retirement funds.

 

While examples of short-term investments that you have to meet needs that must be met immediately, for example, a down payment on a mortgage or marriage capital. Investment diversification, which is often recommended to reduce investment risk, should also be divided by a balanced percentage between these two types of investment.

 

However, keep in mind that apart from making a profit, investing can also come with its own risks. Therefore, when choosing an investment you must be careful.

 

Types & Examples of Investments According to the Time Period

In investment, we recognize two categories, namely short-term investment and long-term investment. The most basic difference is the issue of the time period. This type of long-term investment will provide the best returns if it is invested for a longer time. On the other hand, short-term investments provide maximum returns, even though they are limited in size, even though the time is shorter. The following describes some forms of investment according to the time period desired by you.

1. Forms of Long-Term Investment

a. Gold

Gold is one of the beautiful precious metals and is loved by many people. In addition, gold can also be an investment that will be profitable. That's because gold has a value or price that always goes up every year.

 

Even recently, the price of gold bullion soared higher than usual. This surprise aspect is of course a bonus for gold investors. If only making gold as a safe haven, it can now become a lucrative source of cash.

 

In addition, gold is a very safe type of investment because it survives in various circumstances and is stable and anti-inflation. Therefore, if you invest in gold for 5 years, you can experience multiple benefits.

 

b. Insurance

Insurance is actually a necessity that must be prioritized over having an investment. However, this principle only applies to life insurance and health insurance. Meanwhile, you can take other insurance products as investments, such as vehicle insurance or education.

 

If you want to minimize the risk of losing an object or damage to an object, then insurance is your main choice. In addition to getting protection or protection, with insurance you will also get a profitable investment.

 

As for the type of insurance that is often used as a profitable investment by many people endowment insurance and unit link insurance. This type of insurance is still new but can be an example of an investment that can also provide self-protection. One row, two or three islands are exceeded, right?

 

c. Share

Shares are evidence of a person's participation or ownership in a company or limited liability company. If you own shares, then you can already be called the owner or owner of the company, depending on how big the ownership portion is.

 

The form of the stock itself is in the form of a sheet of paper issued by the company. The sheet of paper also states that the owner of the paper whose name is listed in the letter is the owner of the company in accordance with the portion of the investment invested in the company by the investor.

 

Stocks themselves can be an example of short-term or long-term investment. If allocating it as a short-term investment means that you are targeting profits in the form of capital gains. It means buying and then selling stock when the price is favorable.

 

If the company is in a healthy condition, then the shares purchased will have a high selling value, because it can generate large profits. This is where the attraction of this investment. Unfortunately, this stock investment method is quite difficult because you have to be diligent in listening to fluctuations in the capital market and looking for opportunities.

 

Well, now you can also start investing in stocks through the Magic application. Here, you can buy shares with an initial deposit starting from IDR 100,000. Only with small funds, you can start investing in stocks and get big profits compared to other investments.

 

d. Land and Building

Land and buildings are one of the profitable investments. This is because land and buildings have prices that continue to rise every year. So if you have this investment then you will be able to get a big and promising opportunity.

 

However, the problem is that this investment requires large funds, considering the price Now the house has stepped on the price of hundreds of millions to billions of rupiah. Even so, try to take advantage of property purchase credit products that will help you get the property you want.

 

But you should calculate it correctly because the price of property or land is very dependent on the location and other supporting factors. Property investment is an example of a long-term investment that has been made by the community since ancient times.

 

2. Forms of Short-Term Investment

a. Deposit

If you want a higher interest rate and return on investment, you can try investing with deposit products. Currently, banks have increasingly varied in issuing deposit products so that they can be opened with more affordable funds.

 

However, there is a drawback to this deposit investment, you are not free to take the money you invest because this investment can only be taken according to a predetermined period of time. if ever there are separate provisions that make the yield you receive clearly reduced.

 

To start this investment the procedure is not much different from opening a savings account in a bank. However, the initial deposit required is quite large, which is IDR 5,000,000. In addition, there is also a deposit tax for the returns you receive.

 

After your initial investment, you can adjust it according to your financial capabilities. Usually this type of investment is mostly run by business people or medium-sized businesses.

 

Because the rotation of the time period that has been adjusted can be adjusted to the basic needs of the business they run every year. They also have their own prospects why this type of deposit investment was chosen.

 

b. Bank Savings

Another example of a profitable short-term investment is to use a bank savings product. This investment is one of the easiest and fastest ways to invest your money. Especially if have savings products in foreign currencies.

 

This type of foreign exchange savings is often taken to secure assets. Usually a currency is chosen whose exchange rate is considered stable. For example, the United States dollar or the Euro from Europe.

 

Anyone can make this investment, from children, teenagers to adults. Besides being easy to run, you can also easily withdraw the money, because you can do it anytime and anywhere with an ATM machine.

 

But what you need to remember in this investment is that the percentage of interest generated through this method is very small. The advantage of investing by saving at this bank is that you are not required or required to deposit a fixed amount of funds at any time.

 

So after you create a passbook, you are free to top up your account balance whenever you want. This investment can be said to be more widely used by all circles. That's because this type of investment is easier and for taking it.

 

c. Mutual Fund

Mutual fund investments are securities as proof of claims or assets. Mutual funds can be your profitable investment because they have advantages. The advantages of mutual funds are found in the many options that investors can take to invest their money, namely money market mutual funds, fixed income mutual funds, mixed mutual funds, and stock mutual funds.

 

This method is most suitable for investors with limited funds. Because mutual funds are the most affordable in terms of funds. Especially if you invest in mutual funds through the Magic application. It only takes IDR 10,000 to start your initial investment steps.

 

As an investor, all you have to do is choose the investment instrument that best suits the risk you can bear. In addition, you can also be more relaxed because your funds will be managed by an investment manager, so you don't have to worry about listening to fluctuations in financial markets.

 

Mutual funds are examples of long-term investments that are often to save an emergency fund. because the best results you will feel within a minimum period of 12 months or one year. So, when an emergency occurs, you can easily withdraw this investment to meet these needs

 

Those are some forms of investment according to the desired time period. The example above can be your choice to start investing. However, remember! You have to consider the investment that you will run. This is done so that you can achieve maximum profit in the future. Good luck.